“CHALLENGES AND OPPORTUNITIES

IN SUSTAINABLE PORTS”

INTRODUCTION

The Philippine Ports Authority was created under Presidential

Decree (PD) No. 505 which was subsequently amended by PD

No. 857 in December 1975. As a leading Government Owned

and Controlled Corporation and as emphasized in its Corporate

Social Responsibility Statements, PPA continues to work

towards upholding the highest standards of corporate

governance by simply being a responsible corporate citizen.

This entails to:

1) Developing and Operating ports that cater to the needs of

local and/or global clients in accordance with best practices

and state-of-the-art technologies

2) Promoting the growth of communities by linking them to the mainstream of economic activities,

3) Establishing fair and equitable business relationships which

are beneficial to both port stakeholders and the government, and

4) Uplifting the lives of its employees by giving them a work

environment that is conducive and offers opportunities for

career advancement.

In 1978, the PPA charter was further amended by Executive

Order (E0) No. 513 granting the PPA police authority, creating

the National Port Advisory Counsel to strengthen cooperation

between the government and the private sector and

empowering the PPA to exact reasonable administrative fines

for specific violations of its rules and regulation, subsequently

Executive Order (EO) No.159 was issued on the same year to

give PPA financial autonomy and responsibility for undertaking

all construction projects under its port system using their corporate funds.

CHALLENGES IN SUSTAINABLE PORTS

1. CONGESTION IN PORT OPERATIONS AREA

Several ports nationwide have expanded its

interior capability to accommodate cargoes and

containers. However, with the increasing cargo

volume year by year, port utilization still limits

the flow of goods to and from a port.

2. CONTAINER/CARGOES MANAGEMENT

Most of the ports have more incoming goods thanoutgoing goods. This often puts ports faced with thechallenge of how to position cargoes for entry andwithdrawal so as not to affect the daily port operations.Some ports may also lack on-site capacity tomanage/store all containers or shut-out cargoes.

This leads to some ports implement their cargo addresssystem which is an improvised storage management ofcargoes in the port operations area. This systemcontributes a more systematic flow of incoming andoutgoing cargoes/containers.

3. WORKFORCE ADVANCEMENTS

The capacity and efficiency of port operations rely on the

advancements of its working forces. To accommodate and

facilitate transactions at its minimal processing time, PPA is

adopting technology that makes the loading and unloading

of cargoes more efficient. We all know that technology

advancements may reduce the number of personnel

needed to manage the process. In addition, there is also a

need to train workers on the application of technologies.

Nowadays, PPA is implementing the e-payment system

and cash and carry system, aside from its automated

financial management system (AFMS).

4. ECONOMIC MOVEMENTS

With millions of tons of cargo being shipped in and out of

the Philippines, and with millions of people depending on

ships to travel from one place to another every year, the

importance of the country’s ports and its shipping industry

cannot be understated. As the country sustains its

remarkable growth, it is all but inevitable that new

challenges will arise to pose a risk to that growth. In

challenging moments, the Philippine economy will only be

as strong as its infrastructure.

5. ENVIRONMENTAL IMPACT

Port operations can impact air quality, water quality and land

use. Some ports already implemented the environmentally-

friendly operating practices to address its environmental

impact and to meet international standards. All ports have

adopted the Solid Waste Management Program and Clean

Air Act.

6. PORT SAFETY AND SECURITY

Port safety and security has remained of prime importance

to the Authority as it continues to work on its envisioned

globally-benchmarked ports. PPA remained compliant with

international requirements for safety and security.

Calculated investments were poured in by PPA in terms of

security equipment in the form of baggage x-ray machines

and walk through detectors corresponding to the standards

in the airline sector. In addition to this, PPA equipped its

port police force with the needed security amenities and

police mobiles in the efforts to be at par with other port

authorities in the region in terms of port safety and security.

7. SOCIAL IMPACT/RESPONSIVENESS

Among the strategies to achieve its goals, PPA is

motivated to contribute significantly in the increase of

trade and tourism and enhance accessibility through

seamless connectivity with other transport modes.

OPPORTUNITIES IN SUSTAINABLE PORTS

As part of its business development program, PPA continuously

promote the participation of the private sector in port services

delivery through the continuing delegation of cargo handling and

other ancillary services as well as the operation of ports and

facilities. This requires PPA to continually review and update

policies, rules and regulations pertaining to port tariff, private port

operation, port privatization, and marketing and promotion of ports,

among others. The complementary role performed by the private

sector as service providers or developers, operators of facilities and

terminals guarantee the efficient, effective, and uninterrupted

operation in the ports.

In view of the regulatory function of PPA, new rules and regulations,

updates on existing policies to keep its operation aligned with the

thrusts of the national government and current business trends and

best practices in the water transport industry.

1. GLOBALIZATION OF STANDARDS

PPA envisioned to have provided port services of

global standards. With this, it is committed to

establish a world-class port operation that is

globally competitive adding value to the country’s

image and reputation.

2. GOOD GOVERNANCE LEADING TO OPTIMIZATION

OF STAKEHOLDERS’ SATISFACTION

As it continues to sharpen up its operating efficiency to

accommodate the demands and requirements of stakeholder

in the maritime/port sector, the efforts to continually transform

the organization as a model corporate agency have

remained of paramount significance. Accordingly, PPA

initiated programs to strengthen its foundation in key areas in

order to buoy up our massive expansion and modernization

program which, in the longer term, is expected to sustain

revenue growth and performance.

3. SKILLS DEVELOPMENT PROGRAM

To be globally competitive would mean to raise

employees’ competence to global standards and

nurture them a positive work environment.

4. PROCUREMENT OPPORTUNITIES

With the increasing volume of cargoes and number

of port users, procurement opportunities are

inevitable in the country as it goes aligned to the

growing economy. These include infrastructure

projects, human resources and others.

5. NEW MARKET OPPORTUNITIES

Among its new mandate, PPA engaged into

privatization in some of the ports services particularly

the operation of its Passengers Terminal. This leads to

creating new market opportunities as it welcomes

private sector to contractually operate inside the port

premises. PPA also aimed to maximize benefits from its

privatization scheme.

6. NEW GOVERNMENT MANAGEMENT PHILOSOPHY

PPA geared toward the optimization of stakeholders’ satisfaction as it

continues to participate and cooperate with the new government

management philosophy. The government is concerned on the

welfare and comfort of its citizens. The implementation of Port

Integrated Clearing Office (PICO) and the Malasakit Help Desk

(MHD) are among its programs that will greatly boost service

satisfaction. The PICO is a one-stop shop set up in which PPA

personnel together with the representatives of the other support

agencies will stay in one office to respond to the needs of the clients/

customers. On the other hand, the MHD also is a one-stop shop

manned by PPA as lead coordinator and three (3) other support

agencies as represented by PCG, OTS and LTRB to assist and

respond to any issues and concerns of the passengers. Truly, these

programs provide a good avenue for the passengers so that they will

feel that they are being cared for as what DoTR Secretary Tugade

used to say, “… for the welfare and comfort of the Filipino citizen.”

The Philippine Ports Authority plays an

important role in connecting its 7,107

islands through trade and industry.